PENSION AND SEVERANCE continued
42. PENSION AND SEVERANCE continued
Labor Law No. 132003 continued 2008 2007 Current service cost 52,165 45,033 Interest cost 68,594 62,432 Amortization of unrecognized past service cost 1,138 870 Cost of Pension benefits 119,621 106,595 Reconciliation of provision for post employment benefits are as follows Bank Mandiri only: 2008 2007 Beginning Balance of Provision for Post Employment Benefits 770,657 678,128 Expenses during the year 119,621 106,595 Payments of benefits 24,735 14,066 Provision for Post Employee Benefits Note 28 865,543 770,657 The amount does not include pension of employees which have resigned but not yet paid amounting to Rp27,253 which have been excluded from actuarial computation . As of December 31, 2008 and 2007, the provision for post employment benefits in the subsidiaries amounted to Rp32,206 and Rp14,281, respectively. Free of Service Period MBT MBT is a period prior to pension age which frees the employee from their active routine job where the related employee does not come to work but still obtains employee benefits such as: salary, medical facility, religion vacation benefit, annual leave if in the current period the employee still has active working period, grand leave if the grand leave within the MBT period, mourning benefit and mourning facility. In addition to the above benefits, the MBT facilities are to provide the employee with an opportunity to prepare prior entering the pension age. The Pension Age, Minimal Working Period and MBT period are as follows: No Pension Age Minimal Working Period MBT Period 1. 56 years 12 years 12 months 2. 46 years 9 years 9 months Assumptions used in the actuarial report for MBT calculation are as follows: a. Discount rate is 12 per annum 2007: 10. b. Expected rate of annual salary increase is 11 2007: 10. c. Normal pension age is 56 years. d. Turnover rate is 5 up to employees’ age of 25 and reducing linearly by 0.167 for each year up to 0 up to at age 55 and there after 2007: 5 up to employees’ age of 25 and reducing linearly by 0.25 for each year up to 0 at age 45 and thereafter. e. Mortality rate table is Indonesia mortality table 1999 or TMI II 2007: US 1980 Commissioners’ Standard Ordinary Table of Mortality. f. Disability rate is 10 of TMI II 2007: 10 of mortality rate. PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated 11142. PENSION AND SEVERANCE continued
Parts
» Recapitalization GENERAL continued b. Merger continued
» Initial Public Offering of the Bank’s Shares
» Quasi-Reorganization GENERAL continued d. Initial Public Offering of the Bank’s Shares continued
» Divestment of Government Share Ownership Structure and Management
» GENERAL continued g. Structure and Management continued
» Principles of Consolidation GENERAL continued g. Structure and Management continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued b. Principles of Consolidation continued
» Foreign Currency Transactions and Balances
» Transactions with Related Parties
» Placements with Bank Indonesia and Other Banks
» Securities SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued e. Cash and Cash Equivalents
» Government Bonds SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued g. Securities continued
» Other Receivables - Trade Transactions
» Securities PurchasedSold under ResellRepurchase Agreements
» Loans SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued g. Securities continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued l.
» Acceptances Receivable and Payable
» Investments in Shares of Stock
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» Deposits from Customers SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued q. Other Assets
» Securities Issued SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» Income Tax SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» Interest Income and Interest Expense
» Fees and Commissions SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» Post-Employment Benefits SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» Earning Per Share SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued CURRENT ACCOUNTS WITH BANK INDONESIA
» CURRENT ACCOUNTS WITH BANK INDONESIA continued CURRENT ACCOUNTS WITH OTHER BANKS
» CURRENT ACCOUNTS WITH OTHER BANKS continued
» PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS continued
» PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS continued SECURITIES
» SECURITIES continued SECURITIES continued
» SECURITIES continued Bank Mandiri Tbk (english)
» SECURITIES continued GOVERNMENT BONDS GOVERNMENT BONDS continued
» GOVERNMENT BONDS continued Bank Mandiri Tbk (english)
» OTHER RECEIVABLES - TRADE TRANSACTIONS continued
» SECURITIES PURCHASED WITH AGREEMENTS TO RESELL
» SECURITIES PURCHASED WITH AGREEMENTS TO RESELL continued
» DERIVATIVE RECEIVABLES AND PAYABLES continued
» LOANS Bank Mandiri Tbk (english)
» LOANS continued LOANS continued
» LOANS continued Bank Mandiri Tbk (english)
» ACCEPTANCES RECEIVABLE Bank Mandiri Tbk (english)
» ACCEPTANCES RECEIVABLE continued INVESTMENTS IN SHARES OF STOCK
» INVESTMENTS IN SHARES OF STOCK continued
» PREMISES AND EQUIPMENT Bank Mandiri Tbk (english)
» PREMISES AND EQUIPMENT continued
» OTHER ASSETS continued DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS
» DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS continued DEPOSITS FROM CUSTOMERS - SAVINGS DEPOSITS
» DEPOSITS FROM CUSTOMERS - TIME DEPOSITS
» DEPOSITS FROM CUSTOMERS - TIME DEPOSITS continued
» DEPOSITS FROM OTHER BANKS - DEMAND AND SAVINGS DEPOSITS continued
» DEPOSITS FROM OTHER BANKS - TIME DEPOSITS
» DEPOSITS FROM OTHER BANKS - TIME DEPOSITS continued
» SECURITIES SOLD WITH AGREEMENTS TO REPURCHASE
» ACCEPTANCES PAYABLE Bank Mandiri Tbk (english)
» ACCEPTANCES PAYABLE continued Bank Mandiri Tbk (english)
» SECURITIES ISSUED continued Bank Mandiri Tbk (english)
» Nil 2007 Bank Mandiri Tbk (english)
» FUND BORROWINGS Bank Mandiri Tbk (english)
» FUND BORROWINGS continued Bank Mandiri Tbk (english)
» ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES
» ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES continued
» TAXATION continued e. Deferred Tax Assets
» OTHER LIABILITIES Bank Mandiri Tbk (english)
» OTHER LIABILITIES continued Bank Mandiri Tbk (english)
» SUBORDINATED LOANS continued Bank Mandiri Tbk (english)
» MINORITY INTERESTS IN NET ASSETS OF CONSOLIDATED SUBSIDIARIES
» SHAREHOLDERS’ EQUITY Bank Mandiri Tbk (english)
» SHAREHOLDERS’ EQUITY continued Bank Mandiri Tbk (english)
» MANAGEMENT STOCK OPTION PLAN
» MANAGEMENT STOCK OPTION PLAN continued
» INTEREST INCOME Bank Mandiri Tbk (english)
» OTHER OPERATING INCOME - OTHERS
» PROVISION FOR POSSIBLE LOSSES ON EARNING ASSETS
» REVERSAL OF ALLOWANCE FOR POSSIBLE LOSSES - OTHERS - NET
» GAINSLOSSES FROM INCREASEDECREASE IN VALUE OF SECURITIES AND GOVERNMENT BONDS
» GENERAL AND ADMINISTRATIVE EXPENSES
» SALARIES AND EMPLOYEE BENEFITS
» SALARIES AND EMPLOYEE BENEFITS continued 2007 PENSION AND SEVERANCE
» PENSION AND SEVERANCE continued PENSION AND SEVERANCE continued
» PENSION AND SEVERANCE continued
» COMMITMENTS AND CONTINGENCIES Bank Mandiri Tbk (english)
» FOREIGN CURRENCY TRANSACTIONS continued RELATED PARTY TRANSACTIONS
» RELATED PARTY TRANSACTIONS continued
» RELATED PARTY TRANSACTIONS continued MATURITY PROFILE
» MATURITY PROFILE continued Bank Mandiri Tbk (english)
» MATURITY PROFILE continued SEGMENT INFORMATION
» SEGMENT INFORMATION continued Bank Mandiri Tbk (english)
» CAPITAL ADEQUACY RATIO Bank Mandiri Tbk (english)
» CAPITAL ADEQUACY RATIO continued
» NET OPEN POSITION Bank Mandiri Tbk (english)
» CUSTODIAL AND TRUST OPERATIONS continued
» CHANNELING LOANS Bank Mandiri Tbk (english)
» CHANNELING LOANS continued Bank Mandiri Tbk (english)
» RISK MANAGEMENT continued Bank Mandiri Tbk (english)
» SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES
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